It is one of the largest industries in both the global and national contexts.

It involves cooperative relationships with multiple organizations. INDIA being a cheap destination for leisure tourism ,unlimited tourism and untapped business prospects, we can expect green pastures of growth in the year ahead

The world travel and tourism council(WTTC) has predicted that India has potential to become the number one tourist destination in the world, with demand growing 10.1% per annum. The hospitality industry is poised to grow at a faster rate and reach Rs.1500 billion. The contribution of the entire travel and tourism sector including hospitality industry in India to Gross Domestic Product is estimated to rise from 8.6% (USD 117.9 billion) in 2010 to 9.0% (USD 330.1 billion) by 2020.

Many higher end hotels in India are realized that their key USP in international competition is not their high-tech facilities, but rather their outstanding staff-to-guest ratios and the longstanding tradition of Indian hospitality as immortalized by "Atithi Devo Bhava". Hospitality is about serving the guests and to provide them with a "feel-good-effect". Personalized comprehensive service, such as suites having their own personal butler, gives guests that extra feel of being valued by their hosts.

Foreign arrivals into India: 5 million appx. Vs. 35 million in China

The two nations were on par 2 decades ago at 750,000 arrivals

Today, Beijing alone has as many hotel rooms as the whole of India Indias luxury rooms availability lower than even smaller East Asian

countries
80000 70000 60000 50000 40000 30000 20000 10000 0
HongKong Bangkok Singapore Malaysia India

Source: Compendium of Tourism statistics, WTO

Premium & luxury segment

FIVESTAR DELUX

Premium & luxury segment

FIVE STAR

Mid Market Segment

FOUR STAR

Mid Market Segment

THREE STAR

Budget Segment
TWO STAR

Budget Segment
ONE STAR

Palaces & Forts

HERITAGE HOTELS

The business traveler. International and national sports& game players The leisure traveler. Airline cabin crew.

Domestic
Pilgrims Students Officials Film Stars Intellects Business Executives Tourists

Foreign
Political Representatives Trade Representatives Cultural Representatives Educationists Sportsmen Business Executives Tourists

40 35 30 25 20 15 10 5 0

39.5

19
8.1 1.1 1.9 9 4.8 5.8 1.6 6.3

The main reasons for the demand are:

India's strong GDP growth. Opening of sectors of economy to private sector/foreign investment. Strengthening of ties with the developed world. Reforms in aviation sector. Development of sports and games scenario.

Current supply appx. 1,20,000 rooms of which 5

Star category accounts for appx. 30%

India needs an additional 80,000 rooms in the next 2/3 years to service projected tourist arrivals Need of Rs.32,000 crore in the next three to five years.

11

According to HVS International

Around 10,856 hotel rooms DELHI Around 9,318 rooms MUMBAI Around 7,794 rooms - BANGALORE Around 7,408 rooms HYDERABAD India has a supply and demand mismatch

HOTEL CHAINS

SMALL CHAINS

INDIAN HOTELS COMPANY LTD EIH LIMITED ITC HOTELS LTD ITDC LTD

HOTEL LEELA VENTURE ASIAN HOTELS BHARAT HOTELS

PUBLIC SECTOR CHAINS

ITDC HAI INTERNATIONAL HOTEL CHAINS MARRIOTTE STARWOOD BERGGRUEN HOTELS EMAAR MGF

LOCALIZED HOTEL COMPANIES

The Indian Hotels Company

With its subsidiaries collectively known as TAJ HOTELS ,RESORTS &PALACE. Incorporated by the founder of TATA Group. First property TAJMAHAL PALACE HOTEL ,BOMBAY,1903. 83 proprties at 40 locations across INDIA with an addition 17 international hotels.

Established in 1966 as an autonomous public sector corporation. Entrusted with the task of helping, developing tourism infrastructure and promoting INDIA as a Tourist destination. It has Elite Hotels , Comfort Hotels ,Classic Hotels. 33 Hotels in 22 Tourist destinations all over INDIA .

It was lunched on October 18th,1975. First Hotel CHOLA SHERATON IN CHENNAI. Currently there are 10 ITC-WELCOME GROUP SHERATON HOTELS and more in pipe line.

ITC-Welcomgroup : a leading hotel chain in India

Established presence in key business locations

Over 6000 rooms under 4 distinct brands

Category
Luxury Upper upscale Upscale - mid-scale Heritage

Brand
ITC Hotel: Luxury Collection WelcomHotel: Sheraton Fortune Hotels WelcomHeritage

Positioning
"Mansions of Luxury" "Passion for Quality" "Promise of True Value" "Unique Experiences"

Bangalore 292 room luxury hotel launched in October 09

Capacity expansion underway at Chennai & Kolkata; plans for other locations also
being progressed. Fastest growing hotel chain with highest operating efficiency (PBDIT/Net Income @ 40%) amongst the 3 leading chains Leverages unique service proposition and international alliance with Starwood Hotels & Resorts - Luxury Collection / Sheraton
18

Manages 34 full service mid-market properties (2000 + rooms ) under the Fortune Hotels brand
21 more hotels in pipeline; room inventory- 4800 appx. 100% subsidiary company : Fortune Park Hotels Ltd.

Also operates 60 properties under the WelcomHeritage brand in 19 states - Maharaja Heritage Resorts Ltd. 50% JV with
Marudhar Hotels (P) Ltd.

19

PRODUCT: High class accommodation, food and beverage and it is a luxury product PRICES: Prices are very high and varies as per the season PROMOTION: Very effective promotion to the targeted customers through national and international magazines.

PLACE: located in all metros and follows its own regional tradition and treats their guests accordingly PROCESS: Regular maintenance of the room, keeping the surroundings clean and hygienic

PHYSICAL EVIDENCE: Deep sleep is more than just the right bed. It is about an environment that soothes all the five senses. Experience our rooms and know how it feels to sleep like a baby again. PEOPLE: Highly professional workers ,internationally qualified chefs.

HOSPITALITY & TOURISM INDUSTRY development goes hand by hand. Tourism policy. Governments open skies policy. Foreign Trade policy. FDI in HOTEL & TOURISM INDUSTRY. Other government initiatives.

Liberalization in aviation fuel rates in the hospitality sector. Pricing policy for aviation influences international air fare. Rtionalization in taxtion sector. Tourist friendly visa regime. Immigration services. Procedural charges in making available land for construction of hotels. Allowing setting up a guest house.

Permission for domestic airlines to commence international flights. Star-up of various low cost carriers.

FDI

100% FDI is permissible in this sector

Incredible India Atithie devo bhava (guests are equal to god) Various Infrastructure building initiatives. Rs.5400 million National Highway Project. 5856km Golden Quadrilateral. 7300km North-South and East-West corriders. Sagarmala project. ITDC

STRENGTHS Faster GDP growth Industrialization. Natural heritage India as a global player

WEAKNESS Lack of connectivity. Lack of publicity. Hectic rules Influence of politicians Marketing gap.

OPPORTUNITIES Health tourism. Strong in cultural and nature aspects. Commercialization of sports and games. FDI policy. Mismatch of supply and demand.

THREATS Poor domestic tourism infra structure Political conditions Terrorism Increase in pollution Entry of new competitors

Site and location Positioning Financial flexibility Brand equity

Hospitality
Tourism Infrastructure Industrialization Education